02.03.2007

• Preferential equity issues to promoters of companies
• It was Reliance that recently issued preferential equity to its promoters. Now it is Hindalco which mulling such an issue to its promoters, the Birlas. What do the rules say in this regard?
• According to SEBI norms, promoters of companies are allowed to increase their holding by a maximum of 5% in one year, through preferential allotment of shares or acquisitions.
• What’s a caveat?
• Papers reported that HTIL (Hutchison Telecom International Limited) has filed a caveat in Indian courts, anticipating a plea by Essar group regarding its ROFR (Right of First Refusal) in respect of sale of its stake to Vodafone.
• A caveat is a notice served through a court of law that ensures no legal action is taken without the knowledge of the person filing the caveat.
• Cases against Lalu Prasad Yadav, our Rail mantriji and government’s position on appeals
• We all know that there are a number of cases pending against him for various reasons. I really lost count of it somewhere.
• He and his wife Mrs. Rabri Devi were acquitted of charges in a 7 yr old disproportionate assets case, which was an offshoot of the fodder scam case. Having lost the case the CBI, the investigating agency has to take a decision whether an appeal has to be filed against the acquittal.
• But the rule position is – under section 389 of the CrPC, only the executive has the power to decide whether the CBI will go in for an appeal in any case. This means that the government has complete control over which judgments the investigating agency will appeal.
• With him in the saddle, supporting the government of the UPA by being an alliance partner, I wonder what the government would do!!
• Broadband connections target
• The Ministry of IT has set a target of 20 mn broadband connections by the end of 2010. Currently, we have just over 2 mn broadband connections.
• Are the futures markets really to be blamed for the inflation?
• No says today’s ET editorial.
• High futures are merely reflecting the supply constraints of agricultural commodities, most of which have bee displaying stagnant production for years. This is well captured in the 422.4 gm per day per capita net availability of food grains in 2005. Besides, the average trading in wheat at the commodities exchanges is only about 35,000 tonnes a day against the annual production of 7.2 to 7.5 crore (72-75 mn) tonnes in the recent years. Can such a low level of trading derail the prices of a commodity harvested and available in most of the consuming areas?
• When is the World Cup party starting? The Cricket World Cup, that is.
• March 13^th.
• BTW what is an alternative name for March 15^th?
• Ans: The Ides of March. The day on which the famous assassination of Julius Caesar by the conspirators, Brutus and Cassius, took place.
• Quote: “That’s one small step for a man, one giant leap for mankind.”
• Louis Armstrong
• When did man play golf on Moon?
• February 6, 1971
• The last couple of days’ bloodbath across global equity market is attributed to two things:
• Experts say that there is as much hype about Chinese economy as there is potential in it.
• A global bubble caused by the Japanese Yen Carry trade.
• What is a carry trade? It is the speculation strategy that borrows an asset at one interest rate, sells the asset, then invests those funds into a different asset that generates a higher interest rate yield. Profit is acquired by the difference between the cost of the borrowed asset and the yield on the purchased asset.